Changes to the NSW Residential Tenancies Act 2010

Under the RTA 2010, when an owner decided to place the property on the market for sale, a tenant was able to terminate a fixed-term agreement without compensation to the landlord (even if the landlord did not intend to sell before the agreement was entered into, but subsequently decided to do so)

The revised changes to the act this month will allow the tenant to terminate a fixed term agreement if the landlord notifies them of their intention to sell – unless the landlord disclosed the proposed sale of the property before entering into the agreement as required by section 26, then tenants will be unable to terminate the fixed term agreement.

As a reminder section 26(2) requires a landlord or landlord’s agent to disclose to a tenant, prior to the tenant entering into a residential tenancy agreement, any proposal to sell the premises but only if a Contract for Sale has been prepared.

We recommend that you include as part of your process when signing a new lease that the question is asked of the landlord if they are considering selling the premises during the fixed term. In which case it is necessary to disclose this information to the tenant to ensure that they cannot give notice should the landlord go ahead with the sale during the fixed term.

Real Plus have added a step on their New Tenancy Procedure template to ensure this step is added to your new tenancy process and we would suggest you do the same on your internal checklists and procedures.

Any queries on this don’t hesitate to call us on 02 8355 4999

NSW Swimming Pool Laws Postponed

The NSW Office of Local Government has postponed laws that will require all swimming pool and spa owners to have a certificate of compliance, which are now due to come into effect on 29^th April 2015.

Council officers have reported that it can take up to three months to issue a compliance certificate from the initial inspection, leaving real estate representatives concerned that not all of their properties would have been compliant before the cut-off.

The delay in commencement of this legislation will allow for a smooth transition period, and means at this stage no further action is required from you as a property manager. Be sure to inform your home owners of this change, and over the course of the year start including pool compliance registration into your procedures to ensure you are prepared once this legislation has been implemented.

You can read more about this Pool Legislation in our blog post, here.

NCAT is Now in Full Effect

In case you missed it, the NSW Civil and Administrative Tribunal (NCAT) commenced on January 1 2014 in place of the Consumer, Trader & Tenancy Tribunal (CTTT).

NCAT integrated the existing 23 separate NSW tribunals in an effort to provide a single (less confusing) gateway in a bid to improve the accessibility, efficiency and accountability of the tribunal system.

To maintain consistency and transparency across the board, NCAT now consists of five different divisions – consumer and commercial, administrative and equal opportunity, occupational and regulatory, guardianship and victim support, in hopes of increasing confidence in the public with using these services.

Matters that had been lodged or in progress with CTTT before January 1^st do not have to be relodged.

For more information visit: http://www.ncat.nsw.gov.au/

Realmark Blog About the Real+ Product

Our clients over at Realmark have written a blog post about the innovative Real Plus product, and why and how it benefits their property management teams.

Follow the link to read the post:http://www.realmark.com.au/our-geeky-property-managers/

National Occupational Licensing System Dumped

On 13 December 2013, the Council of Australian Governments decided that the proposed policy for National Occupational Licensing System (NOLS) should no longer be pursued. This comes as a relief to many throughout the industry who believe a better option exists.

After discussions with the State governments, several concerns surrounding the NOLS model arose. If a policy for NOLS was pursued, there would have been significant costs for the governments and occupations involved so the jurisdictions encouraged that alternative approaches be sought.

An new alternative plan for labour mobility will be particularly beneficial for real estate professionals that live near the borders of two states as it will allow licensees to operate in any state of Australia using just the one license, rather than having to pay a fee or apply for additional licenses.

The NSW government is working alongside the other States to ensure a system is implemented, and the framework is likely to be similar to how the driver’s license system operates.

Stay tuned for more information on this as it develops.

CTTT to Become Known as NCAT

As of January 1 2014, the Consumer, Trader & Tenancy Tribunal (CTTT) will become NSW Civil and Administrative Tribunal (NCAT).

CTTT is currently composed of 23 separate NSW tribunals and this system can be quite confusing. NCAT seeks to integrate these existing tribunals to provide a single gateway in an effort to improve the accessibility, efficiency and accountability of the tribunal system and increase the public’s confidence in these services.

To ensure NCAT can meet the needs of Tribunal users, it will consist of five divisions – consumer and commercial, administrative and equal opportunity, occupational and regulatory, guardianship and victim support. This is a response to the challenge which has been maintaining consistency and transparency across over 30 tribunals whilst still providing quality service.

CTTT have announced that any matters which have been lodged with them and not heard before January 1^st do not have to be relodged with NCAT, and any the resolution of any matters currently in progress will not be affected.

For further information visit: http://www.tribunals.lawlink.nsw.gov.au/

Free Tenancy Dispute Resolution Service for NSW

NSW tenants, landlords and property managers can now utilise a free tenancy dispute resolution service which aims to resolve residential tenancy disputes rather than having them heard by the Consumer, Trader and Tenancy Tribunal (CTTT) which will be known as the NSW Civil and Administrative Tribunal (NCAT) as of 1^st January 2014.

Areas where Fair Trading is able to assist in resolving disputes includes:

• repairs and maintenance
• non-urgent health and safety issues
• alterations and additions
• access to the premises including inspections
• non-compliance with the tenancy agreement
• water saving devices and smoke alarms
• provisions of correct notices
• ending a tenancy
• breaking a lease, and
• condition reports

Rather than have parties go through the standard initial conciliation process at tribunal, this new resolution service seeks to resolve disputes through a teleconference or onsite meeting. This method relies on the co-operation of both parties and their willingness to reach an agreement out of court – Fair Trading recommends that parties involved in a dispute are open to various suggestions of how to settle the dispute.

In any instance where Fair Trading cannot help the parties reach a mutual agreement in regards to the resolution of their dispute, either party can lodge a claim with NCAT. Additionally, NCAT will continue to deal with all other areas of residential tenancy that Fair Trading does not handle.

Visit the Fair Trading – Residential Tenancy Disputes page, or call 13 32 20 for more information about the free dispute resolution service.

New Strata Laws in NSW to Match 21st Century Lifestyle

As property managers, I’m sure we’ve all been frustrated with strata rules at some point or another. Thankfully, proposed new laws are finally bringing strata rules into the 21st century, according to NSW Fair Trading Minister, Anthony Roberts.

Whilst changes are still some time away, the media is going to be heavily focused on these changes over the coming months, meaning your landlords will hear a lot about it all. In order to be prepared for their concerns and questions, we need to be aware of the proposed changes and start to think about how this will affect our processes.

These changes have been prompted by the growth in strata title across NSW over the last 50 years, with more than 30% of NSW’s population now either owning, living or working in strata and community schemes, the department proposes to introduce these new laws by mid-2014.

The new legislation will provide a number of options for more modern, innovative and positive outcomes for all – including owners, investors, tenants and managing agents.

Some of the proposed changes will include:

For tenants:

• Smoke drift – no longer will tenants be allowed to smoke on apartment balconies.
• Pets by Default – tenants can no longer be banned from having a pet or require special permission to do so.

For landlords:

• Renovations – such as addressing noisy timber and tiled floors before they are laid, as opposed to the current system where noisy floors can only be addressed after they become a problem.
• Overcrowding, building defects, levies, debt recovery, sinking funds, insurance, money management, dispute resolution, compliance and enforcement will also be covered.

Executive Committees & Voting

• Allow strata schemes to choose alternative methods of attendance at meetings including social media, video and teleconferencing. Postal or electronic votes from owners who are not physically in attendance will also be acceptable.
• Tenants will have the right to attend and participate in meetings of the owners corporation tenants will not be given new voting rights.
• Executive committee members in strata schemes will have to declare conflicts of interest and may be required to remove themselves from voting on issues if such conflicts emerge.
• Strata managers, building managers, caretakers and agents will no longer be allowed to sit on executive committees

• Proxy votes will be restricted in schemes of more than 20 units to 5 percent of the ownership. In buildings of 20 units or fewer, owners will only be allowed to carry one proxy vote.

What does this mean for you?
We will be keeping a close eye on confirmation of the proposed changes and keeping you in the loop of how it will affect your landlords, and what you can do to update your property management processes and office policies.

For more information about the new Strata Reform, check out the NSW Govt Srata Title Law Reform Position Paper or visit this section of NSW Dept of Fair Trading site.

New Swimming Pool Laws in NSW

New legislation affecting backyard swimming pools and spa pools has been introduced in NSW to enhance the safety of children around private (backyard) swimming pools and spas. How will this affect you?

Pool owners

Swimming pool and spa pool owners are required to register their pools on an online Register to be provided by the NSW State Government. Owners are required to self-assess and state that their pool complies with the applicable standards when registering.

The NSW Swimming Pool Register is available for use at www.swimmingpoolregister.nsw.gov.au. Owners must register their pools by no later than 29 October 2013. There is a penalty for owners who fail to do so. Owners may also register their pools via their local council.

Owners may apply for a Swimming Pool Compliance Certificate from their local councils or an accredited certifier so they are in a position to confidently register their pool. However, there is a fee payable for this service.From 29 April 2014 pool owners who wish to sell their property must apply and obtain a Swimming Pool Compliance Certificate to be attached to the contract for sale, and pool owners who wish to lease their property must apply and obtain a Swimming Pool Compliance Certificate and provide a copy to the tenant.

A Swimming Pool Compliance Certificate is valid for 3 years.

Managing Properties Affected by the NSW Bushfires

Our thoughts go out to all those affected by the Bushfires in NSW... For our Real+ Members managing properties near the affected areas - we wanted to provide you with some information on what to do if any of your tenancies are affected by the disaster. It’s also great information to know even if you are not in those affected areas. 

Office of Fair Trading: 13 32 20

For all Real+ members around Australia this tragic time is a timely reminder to ensure you have efficient procedures in place in regards to landlords insurance. Depending on the policy in your office and state you need to be recommending or ensuring to your landlords to always have up to date Home and Building Insurance so that they are adequately covered in an event such as this.

If you need help setting up an ongoing annual programme to ensure your landlords insurance policies remain up to date, and to eliminate any risk to your agency if your landlord chooses not to insure, don’t hesitate to give us a call at Real+.